Yes Bank crisis continues, independent director Uttam Aggarwal resigns

Uttam Prakash Aggarwal, the independent director of Yes Bank, who is struggling with capital constraints, resigned from his post expressing serious concerns over the deterioration in the operational level of the bank and other matters. However, the bank says that under the instructions of the Reserve Bank, there was already a review of Agarwal’s work to be suitable and worthy. Meanwhile, the bank has received a setback in its plan to raise two billion dollars of capital. Canadian investor Erwin Singh Baraich’s $ 1.2 billion offer will no longer go ahead. Apart from this, there are also challenges in the $ 500 million offer of Citax Holdings and Citax Investment Group.

Bank will raise capital of 10 thousand crores

The bank told BSE that its board of directors has approved a new plan to raise capital of Rs 10,000 crore. For this, approval of shareholders will be taken soon. In a letter to the bank’s part-time non-executive chairman Brahm Dutt regarding his resignation, Aggarwal said that he is resigning with immediate effect from membership of the independent directors of YES Bank, chairman of the audit committee and all other committees of the board of directors .

He said in the letter that the way the company operating levels are falling, inefficient in compliance, management practices and the way by CEO and MD Ravneet Gill, senior group president of operations and control Rajiv Uberoi and member of the board of directors and statutory head Sanjay Nambiar There are serious concerns about the bank’s affairs being seen from it.

On the other hand, the bank said that Aggarwal’s eligibility to be efficient and qualified under the RBI directive was going to be discussed in the board of directors. He has resigned at a time when the Board of Directors was going to do whether he fulfills this eligibility or not.

What did Aggarwal say?

Aggarwal said that he has expressed concerns about these important issues from time to time in the interest of Yes Bank and its millions of small and big depositors, investors, shareholders and all concerned. He said that apart from his resignation, I hope that under the leadership of you, our bank will be stable and the interests of all shareholders and related parties will be protected. In a separate letter sent to SEBI Chairman Ajay Tyagi on 9 January 2020, Aggarwal had requested the capital market regulator to intervene immediately.

Aggarwal, a chartered accountant by profession, said in his letter to the SEBI chairman that the bank’s CEO and Managing Director verbally informed on October 31, 2019, that banks had received investment commitments of $ 1.2 billion from a global investor. While there was no meeting of the board of directors to consider this proposal.

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